Canada Company Registration

Canada stands as a top choice for entrepreneurs and multinational businesses, boasting a stable economy, diverse market, and transparent regulatory system. When registering a company in Canada, you can opt for either federal or provincial incorporation, each offering unique advantages. Federal incorporation gives nationwide name protection and the ability to do business in all provinces, while provincial incorporation is often faster and may have fewer residency requirements.

Types of Companies

1. Federal Corporation (CBCA): Provides national name protection and a standardized legal framework under the Canada Business Corporations Act. Typically requires that 25% of directors be Canadian residents if the board has more than four directors; if there is only one director, they must generally be a Canadian resident.
2. Provincial Corporation: Ideal for businesses operating primarily in one province; certain provinces like British Columbia and New Brunswick have no Canadian residency requirements for directors.
3. Sole Proprietorship / Partnership: Quick to set up with minimal paperwork, though not a separate legal entity—meaning personal liability may apply.

Applicable Taxes

• Corporate Tax Rate: Generally ranges from about 25% to 31% when combining federal and provincial rates. Small businesses may qualify for a reduced rate (around 9%) on the first CAD 500,000 of active business income.
• Goods and Services Tax (GST) / Harmonized Sales Tax (HST): Usually 5% federally, combined with provincial taxes in certain regions.
• Payroll Taxes and Withholding: Vary by province and include contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI).

Registration Process and Requirements

1. Choose Federal or Provincial Incorporation: Determine your scope of operations to decide on the best incorporation level.
2. Name Search and Approval: Conduct a NUANS (Newly Upgraded Automated Name Search) or a provincial name check to ensure the chosen business name is available.
3. Draft Articles of Incorporation: Specify share structure, business activities, and directorship details.
4. Director and Shareholder Details: Provide personal information for all directors and shareholders, noting any residency requirements.
5. Registered Office Address: Must be located within the jurisdiction of incorporation (federal or specific province).
6. Business Number (BN) and Tax Accounts: Obtain from the Canada Revenue Agency (CRA) for corporate tax, GST/HST, payroll, and other accounts if applicable.

Why Choose Canada?

• Stable, Diverse Economy: Wide market access, including free trade agreements like USMCA.
• Transparent Legal Framework: Clear regulations foster investor confidence and protect shareholder rights.
• Skilled Workforce: Highly educated labor pool with expertise across various industries.
• Incentives & Grants: Federal and provincial programs supporting research, innovation, and small business development.
• Ease of Doing Business: Streamlined online registration and comprehensive government resources.

Ongoing Compliance

• Annual Returns: Corporations must file annual returns with federal or provincial authorities.
• Corporate Tax Filings: Prepare and submit T2 corporate tax returns to the CRA.
• Financial Statements and Record-Keeping: Maintain accurate books and meet audit requirements if mandated.

Why Work With Us?
Our experienced team streamlines the entire process—from deciding whether federal or provincial incorporation fits your goals best, to guiding you through name searches, drafting articles, and securing tax registrations. We offer ongoing compliance support, ensuring your Canadian corporation remains in good standing and fully leverages local incentives.